USD/JPY sits near 1-month tops, bulls await a sustained move beyond mid-111.00s

• USD/JPY lacks any firm direction and remained confined in a multi-day-old trading range.
• Optimism over the Fed’s unlimited QE and the US stimulus package extended some support.
• Some follow-through USD weakness seemed to hold bulls from placing any aggressive bets.

The USD/JPY pair extended its sideways price action on Wednesday and is currently placed near the top end of a multi-day-old trading range, just below mid-111.00s.

A combination of diverging forces failed to provide any meaningful impetus, or assist the pair to build on its recent strong positive momentum to one-month tops and led to a subdued/range-bound price action through the early North-American session.

The recent optimism over the Fed's unlimited QE and the passage of a massive $2 trillion economic stimulus package by the US Senate dampened demand for traditional safe-haven assets and extended some support to the major.

The uptick was further supported by a goodish pickup in the US Treasury bond yields. However, some follow-through US dollar unwinding trade, led by easing concerns over tightening liquidity, kept a lid on any runaway rally for the major.

Meanwhile, Wednesday's surprisingly stronger US Durable Goods Orders data passed rather unnoticed and did little to impress bulls, warranting some caution before positioning for any further near-term appreciating move for the pair.

Hence, it will be prudent to wait for some strong follow-through buying beyond mid-111.00s, which if cleared decisively, might accelerate the positive move and could possibly lift the pair further beyond the 112.00 round-figure mark.

Technical levels to watch